Seadrill amends jackup construction agreements

Seadrill has agreed with PPL Shipyard and Keppel FELS to make amendments to construction agreements for four new jackups.

Offshore staff

HAMILTON, Bermuda -- Seadrill has agreed with PPL Shipyard and Keppel FELS to make amendments to construction agreements for four new jackups.

Seadrill initially ordered two jackups from PPL Shipyard and two jackups from Keppel FELS for delivery scheduled in 2010. In the amendments to the existing contracts the yards have agreed to postpone all remaining milestone payments for the second units to be built at both yards until delivery, and revise the milestone payment schedule for the first two units.

Seadrill has agreed to issue corporate guarantees for the remaining installments on the first two units, however, no corporate guarantees have been provided for payments of the second units at the yards. As such, the construction of all four newbuilds will continue under the project supervision of the current project teams sponsored by Seadrill.

01/09/2009

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